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Unformatted text preview: FIN 3244 TEST 3 • Mutual Fund o Derives Income from Management Fees • Pooled Diversification o A process whereby Investors buy into a diversified Portfolio of securities for the collective benefit of the individual investor • Management Fees o Generally based off a percentage of assets under management • Load Fund • Non-Load Fund • Open-end Investment Company • Closed-end Investment Company • Exchange Trade Fund • UIT (Unit Investment Trust o Static Portfolio no management • Load o Broker getting a commission o If fees are involved it is included in Price o Commission Paid Completely Different from A to B to C o Front Load ‘A’ share Take money upfront but, doesn’t invest it all at once Commission Least Management Fees o Back-End Load ‘B’ Share • Stay put for 5 yrs no commission • But don’t want to sit still • Higher Management Fees ‘C’ share • Sit still for one year • A lot Higher Management Fees o • No-Load o 401K • Net Asset Value • 12B-1 o Marketing expense that mutual funds can be compensated for o An annual marketing or distribution fee on a mutual fund. The 12b-1 fee is considered an operational expense and, as such, is included in a fund's expense ratio. • UIT o Unmanaged portfolio • REIT (Real Estate Investment Fund) o A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or...
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This note was uploaded on 04/02/2012 for the course FIN 3244 taught by Professor Peterson during the Spring '10 term at Florida State College.
- Spring '10